Fair Value Measurements (Tables)

9 Months Ended

Sep. 27, 2015

Fair Value, by Balance Sheet Grouping [Table Text Block]

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments:



	September 27, 2015				December 28, 2014
	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Fair Value Measurements
Financial assets
Cash equivalents	$	346	$	346	$	61,450	$	61,450	Level 1
Non-current cost method investments (a)	6,176		169,614		4,264		147,760		Level 3

Financial liabilities
Series 2015-1 Class A-2-I Notes (b)	875,000		876,575		—		—		Level 2
Series 2015-1 Class A-2-II Notes (b)	900,000		909,720		—		—		Level 2
Series 2015-1 Class A-2-III Notes (b)	500,000		500,950		—		—		Level 2
Term A Loans, repaid in June 2015 (b)	—		—		541,733		540,717		Level 2
Term B Loans, repaid in June 2015 (b)	—		—		759,758		752,160		Level 2
7% debentures, due in 2025 (b)	86,743		105,625		85,853		104,250		Level 2
Cash flow hedges (c)	—		—		3,343		3,343		Level 2
Guarantees of franchisee loan obligations (d)	979		979		968		968		Level 3

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(a)

The fair value of our indirect investment in Arby’s Restaurant Group, Inc. (“Arby’s”) is based on applying a multiple to Arby’s earnings before income taxes, depreciation and amortization per its current unaudited financial information. The carrying value of our indirect investment in Arby’s was reduced to zero during 2013 in connection with the receipt of a dividend. The fair values of our remaining investments are not significant and are based on our review of information provided by the investment managers or investees which was based on (1) valuations performed by the investment managers or investees, (2) quoted market or broker/dealer prices for similar investments and (3) quoted market or broker/dealer prices adjusted by the investment managers for legal or contractual restrictions, risk of nonperformance or lack of marketability, depending upon the underlying investments.


(b)	The fair values were based on quoted market prices in markets that are not considered active markets.


(c)	The fair values were developed using market observable data for all significant inputs.

(d)

Wendy’s has provided loan guarantees to various lenders on behalf of franchisees entering into debt arrangements for new restaurant development and equipment financing. In addition during 2012, Wendy’s provided a guarantee to a lender for a franchisee in connection with the refinancing of the franchisee’s debt. We have accrued a liability for the fair value of these guarantees, the calculation of which was based upon a weighted average risk percentage established at inception adjusted for a history of defaults.

Fair Value, Nonrecurring



			Fair Value Measurements						Nine Months Ended September 27, 2015 Total Losses
	September 27, 2015		Level 1		Level 2		Level 3		Nine Months Ended September 27, 2015 Total Losses
Held and used	$	5,060	$	—	$	—	$	5,060	$	12,257
Held for sale	2,663		—		—		2,663		1,211
Total	$	7,723	$	—	$	—	$	7,723	$	13,468



			Fair Value Measurements						2014 Total Losses
	December 28, 2014		Level 1		Level 2		Level 3		2014 Total Losses
Held and used	$	8,651	$	—	$	—	$	8,651	$	17,139
Held for sale	4,967		—		—		4,967		2,474
Total	$	13,618	$	—	$	—	$	13,618	$	19,613